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kragdar
New Member

Reporting a Fulbright Grant as wages, how can I deduct airfare/lodging/etc?

According to the IRS, since my type of Fulbright grant is income paid for services (teaching) then I need to file it as wages rather than a scholarship. Link: https://www.irs.gov/individuals/international-taxpayers/fulbright-grants

However, the page also mentions I can deduct employee business expenses. 

"When a Fulbright grant is considered as wages, then several possibilities may be available to reduce your U.S. federal income tax on these wages. For example:

  1. If your tax home is in the United States, and you are temporarily in a foreign country away from your tax home in the USA for less than 1 year, then you may be able to deduct your airfare, local transportation, lodging, and food expense as itemized deductions reported on Form 2106, Employee Business Expenses (or Form 2106-EZ) and Schedule A of Form 1040.  See Chapter 26 of Publication 17, Your Federal Income Tax, for an explanation of the Tax Home concept and Away-From-Home expenses.  See also Publication 463, Travel, Entertainment, Gift, and Car Expenses."

I believe this option applies to me. However, when I go to deduct on TurboTax, it only lets me deduct expenses if it's related to a W2. Fulbright doesn't give W2s. This is the "Job Related Expenses" option under "Employment Expenses" in Deductions & Credits. It says specifically it doesn't include any expenses for 1099-MISC income. 
7 Replies
IsabellaG
Expert Alumni

Reporting a Fulbright Grant as wages, how can I deduct airfare/lodging/etc?

If you report your Fulbright Grant as wages, you'll be able to deduct the expenses as an employment expense. This is how to report your income:

  1. Go to Federal Taxes>   Wages and Income.
  2. Scroll to the Less Common Income section and choose Miscellaneous Income (the last choice). 
  3. Choose Other income not already reported on a Form W-2 or Form 1099.
  4.  Answer Yes on the Other Wages Received screen.
  5. Continue past Wages Earned as a Household Employee and Sick or Disability Pay.
  6.  Answer Yes on the Any Other Earned Income screen.
  7.  Choose Other on the Enter Source of Other Earned Income screen.
  8.   Enter your fellowship information on the Any Other Earned Income screen.

This will report your fellowship on line 7 of your Form 1040.A s long as it's reported as wages on line 7 you CAN claim those expenses as employment expenses. The fact that you didn't receive an actual W-2 is immaterial. 

[Edit 03/11/18 12:07 PM]

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kragdar
New Member

Reporting a Fulbright Grant as wages, how can I deduct airfare/lodging/etc?

Hi, thank you. I understand how to report it. But how can I deduct the employment expenses? When I try to deduct in Deductions & Credits under Job Related Expenses it tells me I can only report expenses related to W2s.
IsabellaG
Expert Alumni

Reporting a Fulbright Grant as wages, how can I deduct airfare/lodging/etc?

I'm telling you that as long as it's reported as wages on line 7 you CAN claim those expenses as employment expenses. The statement that it needs to be related to a W-2 may confuse you, but the point is that it's for WAGES, and it's reported as Wages, and your deduction is allowable. I'll amend my answer to emphasize that.
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kragdar
New Member

Reporting a Fulbright Grant as wages, how can I deduct airfare/lodging/etc?

Thank you. I was confused by the wording and thought there might have been a separate place for the deductions.  I will deduct in that section and treat it as wages.
IsabellaG
Expert Alumni

Reporting a Fulbright Grant as wages, how can I deduct airfare/lodging/etc?

I can understand that. I hope my edited answer is more helpful.
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debrabivens
Returning Member

Reporting a Fulbright Grant as wages, how can I deduct airfare/lodging/etc?

I have researched this and have tried doing what you told this person to do.  I am not able to find a way to deduct lodging and airfare because of the types of changes in the 2018 tax law that only allows this for certain specific job types.  When I include it as wages and it appears on line 7, it still does not allow deductions.

 

Also - my fellowship was in Germany for 10 mos.  Do I need to report it as foreign income since it was a Fulbright?  Payments came from the Saxony Germany government.

 

Any other suggestions on how to get these deductions?  One form says its allowed, another does not.  Which one is it?  Please help!

xmasbaby0
Level 15

Reporting a Fulbright Grant as wages, how can I deduct airfare/lodging/etc?

@debrabivens Your posted your question to someone else's old thread.  When the former "Answer Xchange" was migrated to the new user forum "Real Money Talk" old Q & A's were moved over with 2019 dates--which of course is confusing in many cases due to recent tax law changes.

 

You should post your own new question in a new thread of your own to get an answer that will be relevant to the tax laws now in effect.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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